CHAPTER 5- REVENUE RECOGNITION A. Revenues- are inflows of assets of an entity or settlements of its liabilities that come from delivering or producing goods, rendering services, or other activities that constitute the entity’s major or central operations. B. REALIZATION PRINCIPLE- revenue should only be recognized when the earnings process is judged to be complete and there is reasonable certainty as to the collectability of the asset to be received. C. INSTALLMENT SALES- customers
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ACCOUNTING IN CONTEXT POTTER I LIBBY I LIBBY I SHORT ACCOUNTING IN CONTEXT BRADLEY N. POTTER University of Melbourne ROBERT LIBBY Cornell University PATRICIA A. LIBBY Ithaca college DANIEL G. SHORT Texas Christian University Boston Burr Ridge, IL Dubuque, IA Madison, WI New York San Francisco St. Louis Bangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto Copyright © 2009 McGraw Hill
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dedicated to a special project. The company will not use the laboratory after the project is finished. Under GAAP, this laboratory should be expensed. 5) Unearned revenue, a current operating liability, arises when a company receives cash before any goods are delivered or services are rendered. T 6) Contingent liabilities that are "probable" can be reasonably estimated are recorded on the balance sheet as a liability and as an expense in the income statement. T 7) For an item to be classified
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confronted with issues as it relates to the treatment or reporting of current and fixed assets. On this premise, as an accountant one will discuss and guide the examiner in the treatment of inventory using Lower – Of – Cost – Or Market; The Acquisition and Disposal of Property, Plant And Equipment; Impairment And Depletion For Long - Term Or Fixed Assets; The Treatment Of Intangible Assets And Research And Development Cost. Chapter 9 Lower – of – Cost or Market for Inventory and Gross Profit Method Given
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CHAPTER 8 Valuation of Inventories: A Cost-Basis Approach ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis 1, 2, 3, 5 1. Inventory accounts; 1, 2, 3, 4, determining quantities, 5, 6, 8, 9 costs, and items to be included in inventory; the inventory equation; balance sheet disclosure. 1, 3 1, 2, 3, 4, 5, 6 1, 2, 3 2. Perpetual vs. periodic. 2 9, 13, 17, 20 4, 5, 6 3.
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international financial reporting system The primary objective of financial reporting as set out in the IASB’s Conceptual Framework is to provide financial information to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity; to enable efficiency of operation of capital markets and To ensure investors’ and lenders’ confidence and trust. High quality financial reporting appears when companies are having good internal financial
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CHAPTER 3 COST–VOLUME–PROFIT ANALYSIS Selected Solutions NOTATION USED IN CHAPTER 3 SOLUTIONS SP: Selling price VCU: Variable cost per unit CMU: Contribution margin per unit FC: Fixed costs TOI: Target operating income 3-16 (10 min.) CVP computations. | | |Variable |Fixed |Total |Operating |Contribution |Contribution | | |Revenues |Costs |Costs |Costs |Income
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to Pinnacle for three years. Therefore, the inherent risk can be lower as the auditor has adequate previous audit works. Such repeat engagement will lower the inherent risk. This case outlines a number of factors related to fraudulent financial reporting that increase the inherent risk. Most of these factors are concluded by understanding the Pinnacle’s business. Concerning the measurement of performance, Pinnacle has introduced performance review system which will induce improper accounting. In
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1 Financial Reporting Overview Chapter 1 is an overview chapter covering accounting users, financial reporting, GAAP, accounting organizations, the conceptual framework, accounting careers, and ethics. The topics are wide ranging and very heavy on the new terminology side of things. Although it is a good chapter for introductory purposes, the concepts and organizations covered are so extensive that it will make a good chapter to come back to later, or at the end of intermediate accounting
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DEPARTMENT OF FINANCE AND ACCOUNTING BACHELOR OF BUSINESS ADMINISTRATION (BBA) COST AND MANAGEMENT ACCOUNTING (BBA 314) COURSE WORK SEMESTER ONE: 2012/2013 Henry Egyeyu 07/U/456/BAK/PS Tel: +256774366667/+256714366667 Question: Accounting theory and practices have identified financial management, financial accounting and management accounting as distinct entities and granted them independent status. Unfortunately, cost accounting which also appears to many users of accounting data and information
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